Case of the D-CCAP Solution for

Vodafone Spain

Harry Wang
 Background: Vodafone Group Strategy
"Powerful"  "valuable"  "customer experience" full-service operation

"How are you" "How are you" "Vodafone 2015"

Billion pounds
Data & user-centric
"More valuable"
50

Reduces investments and focuses on Strategy adjustment

40 1. Revenue decreased for the first time in
strategic markets.
2013.
Focuses on operating profits and
2. Focus on voice → data operation
shareholder return.
30 (RED)
"Stronger" 1. Revenue growth: Focuses on data, emerging
3. Transforms to focusing on customer
markets, enterprises, multi-service communications,
Selective expansion and new services. experience.
4. Invests heavily in fixed networks,
20 and acquisition phase 2. Cost reduction: Increases value and operation
frequently acquires cable operators,
efficiency by scale.
and moves towards fixed-mobile
Rapid expansion and 3. Sells non-holding subsidiaries and invest in strategic
markets such as India and the US. convergence (FMC).
10 acquisition phase 4. Prudent investment: Maintains strong cash flow and 5. Continuously focuses on enterprise
relatively low financing costs; emphasizes networks and new services.
investment returns. 6. Invests primarily in developing markets.
2001 2006 2009 2010 2012 2013 2015

HUAWEI TECHNOLOGIES CO., LTD. Page 1

Vodafone Faces More Challenges in the Era Where Multi
Play Drives FMC

Full-asset operators Use the existing full service resources to

(such as Telefonica and DT) provide Quad Play: fixed-line phone,
broadband, mobile services, and IPTV.

1. Emphasizing mobile advantages  the best

mobile network
2. Supplementing fixed network resource 
resale, self-construction, or acquisition
3. Using contents to guide data usage and rate
acceleration

Cable TV operators With the help of MVNOs, cable TV

NGA BB (> 30 Mbps downstream) is operators can provide Quad Play
highly prepared with rich contents. relatively easily.

HUAWEI TECHNOLOGIES CO., LTD. Page 2

 Network Strategy: 3 Methods to Construct Full-service
Infrastructure

KDG

2012 2013 2014 2015 2016

Telstraclear ONO FTTC in
Italy
3 methods
 Acquisition: in Germany, Spain, New Zealand, and Greece, providing Quad Play services
 Self-built: in Portugal, Spain (co-construction), Italy (Enel), and Ireland (ESB)
 Lease: in Germany (DT), Italy, and UK (BT)

Long-term strategy: Improve NGA coverage and focus on developing optical fiber and cable networks.

HUAWEI TECHNOLOGIES CO., LTD. Page 3

Vodafone Spain Faces Two Challenges: User Scale and Content

Market share of fixed network users in 2015 Contents lag behind Telefonica.
FTTH
Others HFC (DOCSIS 3.0) Football Toros F1 Moto

ULL (DSL)
Exclusive Exclusive
√ √ √ √ √ ×
at Home at Home

Public Public √ √ × × × √
VDF/
Public Public × × × × × ×
ONO

VDF/ONO, falls behind in FTTH, large number of cable subscribers

Number of users fell to the third.
OSP
Fixed network market share (May 2016)
Orange & Jazztel, 2nd largest FTTH operator, keeping DSL as a temporary solution Others
5%
Vodafone Movistar
23% 44%
TLF In 2015,
Orange acquired Jazettel, and the
Telefonica: Investment from copper to fiber everywhere
Orange number of fixed network
28%
0 4.400.000 8.800.000 13.200.000 17.600.000 22.000.000 subscribers surpassed that of VDF.

HUAWEI TECHNOLOGIES CO., LTD. Page 4

Video Strategy: Live Broadcast of 4K Sports in Bars First,
Then in Households
Promoting 4K service development by
4K TV popularization Richer and richer 4K contents live football broadcast

The price of mainstream 4K TVs The largest media group in Spain puts Football live broadcast significantly
dropped to €1K to €2K. great efforts into making 4K programs. improves revenue of bars.

55 inch 4K TV price in Spain In November 2015,

Mediapro began
2X Customer: twice more

100 to record 4K programs.

During a match,
80
60
70% customer spending increases.
5 satellite cars 6 broadcast cars 12 4K cameras
40
A key match brings €35M income
20 €35M to bars.
0
1k-2k 0k-1k 2k-3k 3k-4k 4k-5k 5k-6k
55" 89 7 21 2 2 2

4K TV purchase willingness Huge bar market in Spain:

increases to 46%. Netflix provides 4K videos in Spain.
120K Bars
5% 46% 390K Vodafone TV cooperates 130K Horeca –Hotel/Restaurants/Cafes
with Netflix, possibly

Current 4K TV 4K TV 2015 providing 4K services.

Vodafone: 15K bar subscribers
Penetration rate Purchase intention 4K TV Sales

HUAWEI TECHNOLOGIES CO., LTD. Page 5

Service Strategy: Launch Video-Based Full-service
Packages and Attract Users with Contents

Football match offer: all for €10

One basic package: €37.6/month

Free Netflix

100,000+ new subscribers in 3 months, much more than other operators

Monthly new subscribers in Sept., Oct., and Nov.

Free Netflix for 6 months as a key selling point

HUAWEI TECHNOLOGIES CO., LTD. Page 6

Fixed Network Strategy: Build Multi-service Convergence
Networks and Quickly Provide Gigabit Access

Customer premise Last-mile access Distribution point Access network Transport

Convergent access network

Consumer Enterprise Whole sale Carrier
Asymmetric symmetric traffic profile CoS

• Construct a digital backhaul network

2G/3G/4G based on unified media.

• Provide point-to-point and point-to-

Microwave multipoint manageable bandwidth

• Fiber-based infrastructure (FTTH P2PGb,

Coaxial cable GPON, NGPON) enables multiple service OLT
Voice Data TV Video

accesses.

• QoS-based traffic aggregation

xDSL
• Unified design, planning, deployment, and
O&M

FTTH • Ensure secure and cost-effective

architecture evolution in the future.
•
•
•

HUAWEI TECHNOLOGIES CO., LTD. Page 7

Strategy: On-Demand Deployment of DOCSIS 3.1/3.0+FTTH
Broadband
New areas

All
subsc FTTH: 300M to 1Gbps FTTH+IPTV (4K)
ribers Video (live broadcast/VOD): IPTV

Hybrid fiber-coaxial (HFC)

Existing areas network
Evolution to FTTH at the Quick-win
DOCSIS 3.1 upgrading: minimum cost
High-value 300 Mbps to 1Gbps
subscribers
Live broadcast: DVB-C
VOD: QAM -> OTT in 4K Network with DOCSIS3.1+DOCSIS3.0
and convergent TV (DVB-C & OTT)
Common
D3.0 20-100 Mbps
subscriber Live broadcast: DVB-C
VOD: QAM -> OTT (HD)

HUAWEI TECHNOLOGIES CO., LTD. Page 8

DOCSIS Network: Switch from Centralized to Distributed
Architecture to Meet Future Bandwidth Requirements

HUAWEI TECHNOLOGIES CO., LTD. Page 9

Spectrum Planning: DOCSIS 3.1 Spectrum Expansion with
Traditional DTV Gradually Exiting the Network
DOCSIS:
Downstream: Add 2 x 192 MHz DOCSIS 3.1 blocks.
Upstream: Add 1 x 144 MHz DOCSIS 3.1 block.

Video:
Traditional DTV system (160 MHz) exits the network.
Spectrum is migrated for the NGTV system.

HUAWEI TECHNOLOGIES CO., LTD. Page 10

One-stop Deployment Meeting next 5 to 7 years’ Demand

Spectrum
further
Expansion or
CMC splitting

1.2Ghz Reclaim DVB spectrum

Expansion for new Broadband
requirement

HUAWEI TECHNOLOGIES CO., LTD. Page 11

As Is: Current HFC Network of ONO

141,540 amplifiers
4 central headends 23 regional headends 234 primary nodes 15,542 fiber nodes N+3(90%)/N+2

CPO CSO NP NT eMTA

CM
eRouter
AMP
eCM /OOB STB

EQAM TX CM number
1.CM (excluding STBs) 2,546,147
RX

Combiner

Splitter
2.STBs 778,209
Video Headend VOD
Server TX
/Internet/Voice RX
DWDM EQAM
/ISPs/Business VPN SRM
RX TX

Combiner
Router RX
eMTA
CMTS RX CM
eRouter
Router RX
Now: 5—65 MHz/87~870 MHz
Future: 5—204 MHz/258~1218 MHz eCM/OOB STB

Central headend Regional headend Primary node Optical node Coaxial In-house

From Annex B.2 - VPC RFQ Cover Document_DOCSIS_3.1_final_20150930.xls Primary nodes: 234; fiber nodes: 15,542
From Inventariado red VDF-ONO.pdf Primary nodes: 309: fiber nodes: 16,286

HUAWEI TECHNOLOGIES CO., LTD. Page 12

To Be: D-CCAP Solution for ONO
CM
Central headends Regional headends Primary nodes Fiber nodes Internet
CMC eCM eRouter Voice
U2000 local content RX
OTT
Provisioning (PCP5)
1:4~1:16 eMTA Public Wi-Fi
Video Headend eCM

Combiner
EQAM TX RX eRouter
Internet AMP

RF MODULE
IP TX
Voice Server (ALU) VOD DWDM EQAM .
Server CMC eCM STB NGTV STB
IMS (Huawei) JDSU .. Module
system
ISP Router
CM CPE Bitsream

WDM

WDM
Cisco 7600 RX
VPN 10GE 10G GPON
Router
Cisco 7600
OLT TX0
1:4 1550 nm CM CPE VPN

eCM AP Public Wi-Fi

D-CCAP (U2000+OLT MA5800-X17+CMC) replaces CMTS and optical transceivers.
D-CCAP supports all current services: Internet, voice, videos (BC/VOD/OTT), public Wi-Fi, bitstream and VPN.
Video services (BC and VOD) are implemented by overlay mode. The Motorola video system has been removed.
ONO reuses the JDSU system for HFC maintenance in Phase I, and simultaneously verifies D-CCAP's OAM (Operation & Maintenance) functions.
There are only 2 fibers between the primary node and fiber node.
1 fiber carries downstream RF signal (video+JDSU forward signals), another carries 10G GPON and JDSU reverse signals through WDM.
OLT connects to 2 CRs and supports uplink redundancy with dual routes.
(OLT uplink ports do not work in link aggregation mode).
OLT uses out bound interface (meth) as management (Need support meth ports protection).

HUAWEI TECHNOLOGIES CO., LTD. Page 13

ONO HFC Services
Service Home Wholesale Business
Internet Access √ √
BC √ √
Video VOD √ √
OTT √ √
VPE √ √
Voice
MTA SIP √ √
Public Wi-Fi √ √
Bitstream √
VPN √

1. VPE (voice platform evolution) is based on packet cable (MGCP), and is provided by ONO.
MTA SIP is used by Vodafone which shares SIP voice service with FTTH and twisted pair.
Currently VPE is mainstream. SIP will be mainstream in the future.
2. ONO has 2 video systems: NGTV TiVo and Motorola. The Motorola system will be closed in 3 years in Spain
and has been closed in areas with D-CCAP deployment.
3. Voice and VOD services are carried by L3VPN.

HUAWEI TECHNOLOGIES CO., LTD. Page 14

Home Services (NGTV Service)
Central headends Regional headends Primary nodes Fiber nodes

local content RX CMC

1:4~1:16

Combiner
Provisioning (PCP5) EQAM TX RX
AMP

RF MODULE
Video headend IP TX
VOD DWDM EQAM …
(NGTV ViVo) Server eCM STB NGTV STB
CMC (Cisco 8685DVB)
Router
Module
Cisco 7600
10G GPON
Router
Cisco 7600
OLT
1:4

NGTV ViVo provides BC and VOD video services.

BC programs are modulated in regional headends, and are sent to primary nodes by optical transmitters.
VOD programs are modulated in primary nodes, and are combined with BC signals.
VOD control signals are carried in the L3 VPN (NGTV VPN).
Use the multiple services in multiple VLANs to create NGTV VPN VLAN.
An STB shares one IP address with the eCM.

HUAWEI TECHNOLOGIES CO., LTD. Page 15

Home Services
CR1
10.254.32.1
Public
CM no prov.
OLT 10.195.9.0/24
CMC Home user
10.209.0.23 VPN_VPE CM prov.
10.207.208.0/20
(DHCP Server RR1 10.254.32.2
10.207.196.0/22
CM Mng.
10.207.239.26 VPN_MTAsip Vlan2001
10.127.36.141) Public Vlan2011 Internet
10.254.32.6 (ISIS+IBGP) eRouter /OTT
Vlan2002 PC
VPN_NG
Provisioning (PCP5) TV 2.153.189.0/24 eMTA VoIP
Video Headend
2.153.192.0/20 (VPE MGCP)
2.153.190.0/23
Internet
Voice Server (ALU)
IP CR2
VPN_VPE
(IBGP)
Vlan2016
10.182.18.0/23
CM Mng.
Internet
IMS (Huawei) 10.254.32.5
10.182.20.0/23 eRouter /OTT
Public 10.182.22.0/23
eMTA VoIP (SIP)

VPN_VPE
VPN_MTAsip Vlan2017
(IBGP)
10.89.236.0/22
RR2 10.89.240.0/23 CM Mng.
VPN_MTAsip
10.209.0.24 (One IP address)
VPN_NGTV Vlan2013 NGTV
STB
(IBGP)
VPN_NGTV 10.123.144.0/23
10.123.152.0/21

CM and Internet/OTT service flows are carried in the public network, and ISIS + IBGP runs in the network.
VPE, SIP and NGTV (VOD control signal) service flows are carried in different L3 VPNs (VRF), and iBGP runs in VPNs.
(NGTV STB shares one IP address with the eCM.)

HUAWEI TECHNOLOGIES CO., LTD. Page 16

Network Cutover Solution 1. Install the OLT and optical
splitter/ODF.

Step 1
Power supply
Hub 1 Fiber node 2. Interconnect the OLT and the IP
network.
IP RX fiber
3. Add a rollback path for the
10GE uplink ODF CMC
FN 11 standby service.

OLT New Splitter

SG01 4. Replace the existing optical receiver
or transmitter with a CMC.
MA5800 10GPON i/f
ODF 1:4
CMC
FN 22 5. Cut the upstream optical fiber to

Step 2
the centralized CCAP and ODF.

...
RX1 6. Migrate other optical nodes.
CMTS US
DATA RX2 ODF
IP CMTS DS RX3
CMC 7. Roll back the original service
FN nn
...
(standby).

CMTS RXn

Step 3
MPEG2 TS 8. Complete cutover of all optical
sites.
TX fiber
Headend VOD IPQAM Combiner
DTV TX1

Post-cutover
New Splitter 9. Remove CMTS downstream links.
...

Combiner 1:4 10. Remove the rollback path of the

standby service.
TXn
11. Remove the CMTS.
Upstream connection Downstream connections New connections during cutover

HUAWEI TECHNOLOGIES CO., LTD. Page 17

Current Project Progress

Project scale: 234 hubs, nearly 16,000 optical sites

Current progress:
10,000 units of Huawei D-CCAP have been delivered in the Vodafone Spain project.

Main bandwidth package Equipment room space

Number of covered users
improvement reduction
Over 2 million
50 Mbps to 300 Mbps 250 cabinets

HUAWEI TECHNOLOGIES CO., LTD. Page 18

Project Strategic Benefits: Vodafone Achieves Quick-win Strategy,
Effectively Addressing FTTH Competition
Original plan:
Complete the project
in 4 fiscal years.

Current estimation:
Complete the project
in 2 fiscal years.

HUAWEI TECHNOLOGIES CO., LTD. Page 19

Project Commercial Benefits: The Number of Subscribers
and Revenue Increase, and the Churn Rate Decreases
Vodafone releases 4K video services in bars. Bar subscribers: revenue increased by

29 Aug, pubs 4k football package on line Provides 4K video services for more than bars in Spain.

Package fee: €267 4K TV: contract

 120M broadband package:  Promotion period, free TV
 Rental: for 2 years
 300M broadband
 Installation fee: €158
+sport+entertainment:

Annual revenue growth per bar: (267.56 + 30 x 2) x 12 month =

10K bars: 3930 x 10K =

4 sport channels and 80 entertainment channels
Home subscribers
New fixed convergent package subscribers in 2017:
La liga, king'cup, Spain Champions League
second division Fixed network revenue growth in 2017:
The convergent package reduces
Bicycle, tennis, Olympic Basketball, Europe primary the churn rate by .
Games, and so on football, and so on

HUAWEI TECHNOLOGIES CO., LTD. Page 20

Project Network Benefits: The E2E Latency Decreases by
70%, and Network Stability Is Greatly Improved

HUAWEI TECHNOLOGIES CO., LTD. Page 21

 Thank You!
www.huawei.com

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